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Latest Duplex BRRRR Deal!!!

Real Estate Agent from Cincinnati, OH

posted about 1 month ago

Here is my current project on another BRRRR duplex in Deer Park, Ohio just outside of Cincinnati. I wanted to share the back story on how I picked up this off market deal with hopes to inspire other investors and hopefully add value to your investing!

For those who I have not met yet on BP, I am a police officer/real estate agent/MF investor in a small town near Cincinnati, Ohio. While out on patrol I was dispatched to this home for a burglary report. Long story short, this lady inherited this house that had sat vacant for 18 months, and she believed an ex-roommate of her late brother had broken a window out to steal some beer and a TV. She was crying and explaining this house was a money pit for her, she had no money or knowledge to fix it up to sell it, and just hoped someone would burned it down honestly.. I know telling a cop this...

I explained to her that Deer Park is a great real estate market and she could sell this home as is. I also explained that I am a real estate agent/investor and buy and sell homes in this neighborhood often, if she would like my help. I gave her a card, and took the report. She called me later that same day and asked if she could get 50k for this duplex. I told her I would would be willing to buy the home, but I wanted to bring my contractors through it to price out renovation cost. After pricing out the entire renovation, which includes all new plumbing, electrical, framing, insulation, interior and exterior work, and a complete cosmetic gut and rehab, I could pay her 40k. She was extremely happy to be rid of this money pit, and I was adding a great BRRRR deal to my portfolio.

Based on my current projections, after renovations, and refinancing to a 30yr fixed conventional mortgage. I will cash out around $5,000 in profits, have 25% equity with zero money left in the deal, and cash flow around $400/mo after all expenses. This should work out to be my best deal yet.

Thank for you taking the time to read my story, my hope is that you will take away a few points. Regardless of your profession, you need to be telling everyone what you do and what you are looking for, I have found a few deals this way. If no one knows, opportunity cant find you. There are still deals out there, they are harder to find, but deals like this are out there and do happen all over the country everyday. Even though I got a great deal on this duplex, this is a massive project that will take months to complete. So put yourself in a position to take the opportunities that life will present to you, and make deals a win-win anytime you can. I got a great deal, she got rid of a massive liability with zero cost or effort.

I will post some before and after photos of the project as I have them. I would love to hear your thoughts and projects you are working on too!

Real Estate Agent from Cincinnati, OH

Real Estate Agent from Cincinnati, OH

replied about 1 month ago

@Peter Fennig Absolutely true, my last 6 unit deal was off market as well. One of my tenants just happened to mentioned the elderly owners who self managed were complaining about the building and all of the work. (It was next to my other 6 unit I already bought.) So I reached out to them and was able to buy it for a good price off market. Just simply telling my tenants that I would love to buy other buildings in the area landed me a good one.

@Lee Yoder Much appreciated, I hope all is going well for you as also!

@Mike Dymski That is my favorite comment so far! She had only went to the house a few times since her brother had passed 18 months ago, so we had zero clue who broke in or when. I hope they enjoyed the beers....!

from Cincinnati, OH

Engineer from Cincinnati, Ohio

replied about 1 month ago

That is an amazing deal. Very bullish on Deer Park/Silverton, I think these neighborhoods have the highest upside of any in Cincinnati honestly, but I am probably biased because it is where I do all of my projects. Look forward to seeing the finished product.

from Cincinnati, OH

from Cincinnati Ohio

replied about 1 month ago

Nice! I'm in Cincy. Started studying REI a few months ago. I have a small lending deal at 12% over 6mo (my 1st re investment) and I'm about to purchase my first flip. I'm excited and a little nervous. If you are up for a networking meetup, let me know! I love to pick the brains of those who have been doing this and have more experience than me.

Real Estate Agent from Cincinnati, OH

@Matthew Gaston I like those neighborhoods as well, I used to be a cop in Silverton before Deer Park. I would continue buying there if the right deal comes along such as this one, but taxes and water are expensive so it is hard to make the numbers work on most deals.

Investor from Taylor Mill, KY

@Matthew Gaston I like those neighborhoods as well, I used to be a cop in Silverton before Deer Park. I would continue buying there if the right deal comes along such as this one, but taxes and water are expensive so it is hard to make the numbers work on most deals.

Rental Property Investor from Copper Center, Alaska/Indiana

replied about 1 month ago

Thank you for protecting your community! As a former police officer, I understand how stressful this line of work can be. As a new investor, the entire process can be overwhelming. Thank you for submitting this detailed narrative of ACTIONS. It is an inspiration to many!

Investor from Anchorage, AK

replied about 1 month ago

@Joseph Cornwell Congrats! I also just finished up a BRRRR in Anchorage, Alaska. Its nice to see other peoples victories too. It keeps me motivated :) I wish we could find deals at this price where I live, but its pretty much unheard of. But you can still find deals though.

@Joseph Cornwell Congrats and great perspective! Closed mouths don't get fed....as my grandma would say. We don't have to be one dimensional as we move through life. We can branch out and do other things as you're currently proving. I look forward to before and after pictures of your project.

from las vegas, NV

Congrats on your "off market deal" which is very similar to a "pocket listing" in agent parlance.

"I would continue buying there if the right deal comes along such as this one, but taxes and water are expensive so it is hard to make the numbers work on most deals."

Taxes. Yep, too bad many people these days demand and vote for BIG goverment politicians and policies that require BIG taxes. So, investors export their cash to other jurisdictions where the numbers DO work. That's called voting too - without having to wait till the next election cycle.

Isn't it sad politics is so embedded in many layers of real estate? Oh well, being a savvy investor is one way to sidestep these financial landmines.

from Modesto, California

replied about 1 month ago

The cash flow is a little skinny.......I bought this house with mother in Law for $125k my payment are $850....hardly any work needed just basic paint and carpet I did add laminate flooring and a new water heater ....bought it as an owner occupied after I moved my payment were 850 piti the main house rents for $1375 the mother in law rents for $750...total of $2125 - today it apprised at 265k got in with 5k and change seller paid a good chunk of closing cost I manage it myself and payments are made direct deposit every month ....so overhead is very low .....cash-cow for a house with mother in law

Contractor from Bessemer, AL

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